Railway Accounts Department Examinations

Showing posts with label differences between. Show all posts
Showing posts with label differences between. Show all posts

Saturday, May 23, 2020

Differences between Transfer Transactions and Remittance Transactions


Differences between
Transafer Transactions
Remittance Transactions
1. Refers between different units  in same Railway, different Zonal  Railways in Indian Railways and between Capital and Revenue accounts.
1. Refers between Railways and
other Govt Depts (Defence, Postal etc) & State Govts.
2. Heads operated: Transfer Divisional, Transfer Railways, Transfer Railway Revenue & Transfer Railway Capital.
2. Heads operated: PAO Suspense, AG Suspense, M-Remittances, Reserve Bank Suspense.
3.  The adjustments are made through issue and acceptance of Transfer Certificates between Accounting units in same Railway or between two Zonal Railways.  Also operation of contra transactions, for transfers between Capital and Revenue accounts.
3. The adjustments are made through issue of Advice of Clearance by the various Accounts Officers and memo of clearance by RBI.
4. Clearance: Through book adjustments (by preparing Journal entries) within Railways itself.
4. Clearance: Adjustments through Reserve Bank of India by operation of Deposit with RBI Account or Cheque Payments.


Tuesday, September 10, 2019

Substantive pay and Officiating pay


By Shri J C Nagaraja Rao, Dy.CPO (Retd.)/SCR

Substantive Pay

Substantive pay  means the pay (other than special pay, personal pay or emoluments classified as pay) to which a Railway servant is entitled on account of his appointed to a post substantively or by reason of his substantive position in a cadre.

Officiating Pay

Officiating pay means the difference between the pay that a Railway servant is entitled to draw by virtue of his being put to officiate in a post on which another person holds a lien and his Substantive pay.

Example:

Mr A is appointed as Junior clerk (substantive post) and his pay fixed as Rs.25000. He is promoted as senior clerk on adhoc promotion and pay fixed  as Rs.30000. Hence his substantive pay is Rs.25000 and officiating pay is Rs.5000.

Monday, June 17, 2019

Differences between Cash Accounting and Accrual Accounting


Book Keeping  - 5 marks question asked in 1988 & 2015
Differences between
Item
Cash Accounting
Accrual Accounting
1. Basis
Cash is the basis for recognition of Income or expense. That means actual cash received or paid is the basis.
Revenue earned for income and expense incurred is the basis.  That means Cash received or paid is immaterial
2. Nature
Simple
Complex
3. Matching concept
No.
 Example : Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  But Rs. One lakh is accounted in Fy 2018-19 as income only, though service is not rendered.  That means Income received, but corresponding expense is not incurred in that particular year. Hence No matching concept.
Yes.  Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  Here Rs. One lakh is accounted in Fy 2018-19 as Creditor/Advance income only .  If service delivers in FY 2019-20, advance income shown in 2018-19 FY is adjusted as income earned in the year FY 2019-20.  Because service delivered and income earned are matched in FY 2019-20.
4. Recognition of Revenue
Cash is received
Revenue is earned
5. Recognition of Expense
Cash is paid
Expense is incurred
6. Accuracy
Low
High
7. Suitable for
Not for profit / Govt / Charitable organisations
Business/ Commercial organisations
8. Recognised by Govt
Not by Companies Act, 2013
By Companies Act, 2013
9. Focus on
Liquidity
Profit and Loss
10. Treatment of Prepaid expenses
Charged to current year profits
Recorded as Assets in Balance Sheet
11. Treatment of outstanding expenses
Not recorded
Recorded in Debit side of  Profit and Loss Account and Liabilities side of Balance Sheet
12. Recording of Credit Purchases and Credit Sales
No
Yes
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Monday, May 20, 2019

Differences between Cash accounting and Accrual Accounting


Differences between
Item
Cash Accounting
Accrual Accounting
1. Basis
Cash is the basis for recognition of Income or expense. That means actual cash received or paid is the basis.
Revenue earned for income and expense incurred is the basis.  That means Cash received or paid is immaterial
2. Nature
Simple
Complex
3. Matching concept
No.
 Example : Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  But Rs. One lakh is accounted in Fy 2018-19 as income only, though service is not rendered.  That means Income received, but corresponding expense is not incurred in that particular year. Hence No matching concept.
Yes.  Advance Rs. one Lakh received in 2018 December, for which service is not delivered in FY 2018-19.  Here Rs. One lakh is accounted in Fy 2018-19 as Creditor/Advance income only .  If service delivers in FY 2019-20, advance income shown in 2018-19 FY is adjusted as income earned in the year FY 2019-20.  Because service delivered and income earned are matched in FY 2019-20.
4. Recognition of Revenue
Cash is received
Revenue is earned
5. Recognition of Expense
Cash is paid
Expense is incurred
6. Accuracy
Low
High

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Differences between Single Entry and Double Entry


Differences between
Item
Single Entry
Double Entry
1. Meaning
Accounting system in which only single entry requires for every financial transaction
Accounting system in which two entries requires for every financial transaction.
For every debit, there is equaling credit is posted
2. Nature
Simple
Complex
3. Preferable for
Small enterprises
Big enterprises
4. Preparation of Financial Statements ( such as P & L Account and Balance Sheet)
Difficult
Easy
5. Suitable for Tax purpose
No
Yes
6. Knowledge of Book keeping
Not required
Required
7. Existing from
Since time immemorial
Since 1494 *
8. Detection of errors
Difficult
Easy

* Double entry book keeping was developed by Luca Pacioli, an Italian mathematician.  He is referred as "Father of Accounting and Book Keeping". He described book keeping along with other accounting topics in 9th chapter (150 pages) in his book  "The Summa de arithmetica"
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Wednesday, November 21, 2018

Important questions - Book keeping - Differences between compiled by Shri Uday, SSO(A)/Secunderabad


Important questions - Book keeping - Differences between
compiled by Shri Uday, SSO(A)/Secunderabad

1.       Interest & Dividend  click

2.       Shares & Debentures

3.       Memorandum of Association & Articles of Association

4.       Hire purchase & Installment payments

5.       Trading Account & Profit and Loss Account

6.       Single Entry & Double Entry

7.       Joint Venture & Partnership

8.       Fixed Assets & Current Assets

9.       Trade bills & Accommodation bills  Click

10.   Trial balance & Balance sheet

11.   Straight line method & Written down method (Diminishing balance method)

Sunday, September 30, 2018

Differences between Bad Debts and Doubtful Debts in Book keeping


Book Keeping  - 5 marks question asked in 1983 & 2004
Differences between
Bad debts
Doubtful debts
1. There is no possibility that a money will be collected from the Debtors.
1. There is a possibility that the money will be collect from Debtors.
2. Bad debt has a direct relation with the doubtful debt because when the possibility to collect money ends, a bad debt occurs.
2. Doubtful debt doesn’t depend on the bad debt.
3. A bad debt is written off and it is accounted as an expense in the Profit and Loss account duly deduct from Sundry Debtors in the Balance Sheet or adjust in the Provision for Bad and Doubtful Debts.
3. As a precaution, Company creats a Provision/ Reserve (certain percentage of Total debtors value) by debited to Profit and Loss Account and deduct the Same from Sundry Debtors.  Here it is not an expense, but as a Reserve.

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Saturday, September 29, 2018

Differences between Journal & Ledger


Book Keeping  - 5 marks question asked in 1995 & 2016
Differences between
Journal
Ledger
 1. Book of Original entry
1. Book of Final entry
2. It is a Subsidiary Book
2. It is a Principal Book
3.  It is prepared from the  vouchers, receipts, bills, etc
3. It is prepared from the Journal.
4. Transactions are recorded in the journal in chronological order.
4. Transactions are posted in the ledger in classified form.
5.Narration is required
5. Narration not required
6.There is no scope for balancing the Journal
6. Balancing the Ledger is must
7. Journal is the Basis for Ledger.
7. Ledger is the basis for Final Accounts i.e., Profit & Loss Account and Balance Sheet.
8. In journal, ledger folio (L.F.) is written.
8. In ledger,  journal folio (J.F.) is written.
9. Recording of the transactions in the journal is called journalizing.
9. Recording of transactions in the ledger is called posting.

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